BGR says that that bug will be handled and a few others, too. From the report:

•The update will no longer back up the location database to iTunes
•The size of the location database will be reduced
•The location database will be deleted entirely when Location Services are turned off
•Battery life improvements
•iPod bug fixes

Many disliked Apple's slow response to the location-tracking and I believe they should have released a statement immediately to repair the loss to its reputation. That didn't happen, but at least now the company is doing something to make the public see it cares about its customers and the privacy flap it created.